Capital gains will be automatically reinvested upon the next portfolio rebalance, according to the portfolio manager’s asset allocation.
Why is there undeployed cash in my SaxoSelect Portfolios?
Normally, a small percentage of portfolio remains in cash to offer flexibility, facilitate rebalancing and cover fees. Once the percentage of cash breaches the optimal allocation range (Max or Min), it triggers rebalancing to ensure the portfolios are always on track. If clients top up their accounts and the cash in the portfolio surpasses the upper threshold, the excess cash would be reinvested. In the event that clients withdraw all the cash from the account, breaching the lower threshold, the portfolio might sell the current positions to maintain optimal balance. The optimal allocation range of cash may vary from one portfolio to another based on the underlying and trading strategy.